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Departmental overview

The Treasury’s mission

The Treasury’s mission is to improve the wellbeing of the Australian people by providing sound and timely advice to the Government, based on objective and thorough analysis of options, and by assisting Treasury ministers in the administration of their responsibilities and the implementation of government decisions.

Policy outcome

In carrying out its mission, the Treasury has responsibility for the following outcome:

Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations.

The Treasury has five groups that contribute to achieving this outcome. The groups are:

  • Macroeconomic Group;
  • Fiscal Group;
  • Revenue Group;
  • Markets Group; and
  • Corporate Services and Strategy Group.

Macroeconomic Group

Macroeconomic Group provides advice on a sound macroeconomic environment, which is an essential foundation for strong, sustainable, economic growth.

Macroeconomic Group undertakes monitoring and analysis of economic conditions in Australia and overseas, which forms the basis of quality macroeconomic policy advice to portfolio ministers.

Macroeconomic Group also provides advice to government on a range of international economic policy issues, including strengthening multilateral regimes underpinning open trade and capital flows, supporting developing countries’ development aspirations and on helping to shape the evolution of regional economic architecture.

Macroeconomic Group is also responsible for payments to international financial institutions as outlined in programme 1.2 on pages 55-56.

Fiscal Group

Fiscal Group provides advice on effective government spending arrangements that contribute to the overall fiscal outcome and help deliver strong and sustainable economic growth.

Effective spending measures should meet their stated objectives, minimise behavioural distortions and deliver significant economic and other benefits compared with costs. Fiscal Group provides policy advice to portfolio ministers to promote government decisions that further these objectives.

Fiscal Group is also responsible for the efficient payment of general revenue assistance, National Specific Purpose Payments and National Partnership Payments to the states and territories as outlined in programmes 1.4 to 1.10 on pages 59-71.

Revenue Group

Revenue Group provides advice on effective tax and retirement income arrangements policy and on legislation to implement policy that contributes to the overall fiscal outcome and to strong, sustainable economic growth.

Tax and retirement income policy affects the wellbeing of Australians through influencing individuals’ decisions on saving and investment, as well as through labour market participation and businesses’ decisions about whether, where and how much to invest.

Well-designed tax legislation contributes to the ability of taxpayers to understand and comply with their tax obligations.

Revenue Group also provides advice on the fiscal and distributional impacts of changes to tax policy.

Markets Group

Markets Group provides advice on well-functioning markets that contribute to improving national productivity and promoting stronger economic growth, thereby enhancing the living standards of all Australians.

Well-functioning markets enable the most efficient use of resources and maximise consumer confidence in markets, which, in turn, enhance community benefits from economic activity.

Markets Group provides advice on policies that promote competitive, efficient markets to enhance consumer-wellbeing; a secure financial system and sound corporate practices; and foreign investment consistent with Australia’s national interest.

Markets Group also maintains the operations of the Australian Government Actuary, the Financial Reporting Council and the Takeovers Panel.

Markets Group is also responsible for payments to support markets and business as outlined in programme 1.3 on pages 57-58.

Corporate Strategy and Services Group

The Corporate Strategy and Services Group assists in setting and delivering the corporate strategic direction of Treasury. The group delivers quality and valued corporate advice and services for the department, its people and ministers.

Corporate Strategy and Services Group is responsible for providing accommodation and facilities management; communications advice and support; financial management; human resources management; training and development; information management and technology services; freedom of information management; media management and monitoring; ministerial and parliamentary support; procurement; publishing; security and travel.

Corporate Strategy and Services Group functions also include assisting with the development of whole-of-department corporate strategy; providing support to the Secretary, the Executive Board and the Audit Committee, including oversight of departmental structures and systems; designing and facilitating whole-of-department policy discussions; coordinating organisational strategy initiatives; overseeing the risk management framework; and undertaking and assisting with departmental reviews.

Treasury people values

Treasury people are skilled professionals, committed to providing quality advice, thinking analytically and strategically, and striving to achieve long-term benefits for all Australians. We uphold the important values and behaviours that shape the Treasury culture. These values influence all aspects of the way we work.

Treasury people:

  • strive for excellence;
  • value teamwork, consultation and sharing of ideas;
  • value diversity among our people;
  • treat everyone with respect;
  • exhibit honesty in all our dealings; and
  • treat colleagues with fairness.

Treasury people management principles provide for:

  • open, two-way communications at all levels;
  • clear definition of accountabilities;
  • remuneration based on work performance, determined by fair and transparent processes; and
  • facilitation of an appropriate work and private life balance.

The Treasury’s role and capabilities

The Treasury’s mission statement reflects the breadth of its ministers’ responsibilities and underscores the key importance for the Treasury of a strong relationship with its ministers, built on trust and effective advice. As a central policy agency, the Treasury is expected to anticipate and analyse policy issues from a whole-of-economy perspective, understand government and stakeholder circumstances, and respond rapidly to changing events and directions. As such, the Treasury’s interests are broad and diverse.

In undertaking its mission, Treasury takes a broad view of wellbeing as primarily reflecting a person’s substantive freedom to lead a life they have reason to value.

This view encompasses more than is directly captured by commonly used measures of economic activity. It gives prominence to respecting the informed preferences of individuals, while allowing scope for broader social actions and choices. It is open to both subjective and objective notions of wellbeing, and to concerns for outcomes and consequences, as well as for rights and liberties.

To facilitate objective and thorough analysis, we have identified five dimensions that directly or indirectly have important implications for wellbeing and are particularly relevant to Treasury. These are:

  • The set of opportunities available to people. This includes not only the level of goods and services that can be consumed, but good health and environmental amenity, leisure and intangibles such as personal and social activitie
    s, community participation and political rights and freedoms.
  • The distribution of those opportunities across the Australian people. In particular, that all Australians have the opportunity to lead a fulfilling life and participate meaningfully in society.
  • The sustainability of those opportunities available over time. In particular, consideration of whether the productive base needed to generate opportunities (the total stock of capital, including human, physical, social and natural assets) is maintained or enhanced for current and future generations.
  • The overall level and allocation of risk borne by individuals and the community. This includes a concern for the ability, and inability, of individuals to manage the level and nature of the risks they face.
  • The complexity of the choices facing individuals and the community. Our concerns include the costs of dealing with unwanted complexity, the transparency of government and the ability of individuals and the community to make choices and trade-offs that better match their preferences.

These dimensions reinforce our conviction that trade-offs matter deeply. The dimensions do not provide a simple checklist; rather, their consideration provides a broader context for the best use of available economic and other analytical frameworks, evidence and measures.

The Treasury applies and develops its technical expertise, knowledge base and support systems to deliver on the Government’s priorities. We maximise our potential by nurturing and strengthening our core organisational capabilities, and consistently seek better ways to do business.

Our organisational capabilities are:

  • Deep understanding: understanding our mission, the economic and policy environment, and the views of our stakeholders.
  • Collaboration: collaborating with internal and external stakeholders to develop effective policy.
  • Proactivity and vision: anticipating policy, implementation and organisational issues.
  • Influence and reputation: building trust with the Government and other stakeholders, and influencing the policy agenda.
  • Improvement and adaptability: being flexible, adaptable and innovative.
  • Efficiency and productivity: managing costs, allocating resources and enabling efficiencies.

Financial performance

The Treasury received an unqualified audit report on the 2013-14 financial statements from the Australian National Audit Office. These statements can be found in Part 4 on pages 105-207.

Departmental

The Treasury ended 2013-14 with an attributable surplus of $0.3 million, compared to a surplus of $3.0 million in 2012-13. Employee expenses were $10.4 million higher compared to 2012-13, mainly due to the voluntary redundancy process. Supplier expenses increased by $8.3 million which was mainly due to expenditure relating to the hosting of the G20 Finance Ministers’ and Central Bank Governors’ meetings as part of Australia’s 2014 host year. The Treasury’s net asset position decreased by $3.6 million in 2013-14, mainly due to the recognition of separation and redundancies payable at 30 June 2014.

The Treasury has sufficient cash reserves to fund liabilities as and when they fall due.

Administered

The Treasury incurred $93.8 billion in administered expenses in 2013-14 compared to $81.4 billion in 2012-13. In 2013-14, the Treasury provided a one-off $8.8 billion grant to the Reserve Bank of Australia (RBA) to strengthen its financial position to the level considered appropriate by the RBA Board. There was also an increase in grant expenses to the states and territories that the Treasury provides under the Intergovernmental Agreement on Federal Financial Relations.

The Treasury’s administered net assets increased by $12.3 billion in 2013-14. This is mainly due to an increase in the value of Treasury’s investments in Australian Government Entities.

Figure 1: Treasury senior management structure (as at 30 June 2014)
Secretary: Dr Martin Parkinson PSM
 
Executive Director (Policy Coordination and Governance): Ms Amanda Cattermole A/g

Corporate Strategy and Services Group
Group General Manager: Mr Peter Alexander A/g

Financial and Facilities Management Division
General Manager: Mr Matthew King

Information Management and Technology Division
General Manager: Mr Ricardo Alberto A/g

Ministerial and Communications Division
General Manager: Mr Luke Hickey

People and Organisational Strategy Division
General Manager: Ms Emma Greenwood A/g

Macroeconomic Group: Executive Director (Domestic), Dr David Gruen
Macroeconomic Group: Executive Director (International), Mr Barry Sterland

Macroeconomic Conditions Division
General Manager: Mr Jason Allford

Macroeconomic and Modelling Policy Division
General Manager: Mr Simon Duggan

International Policy and Engagement Division
General Manager: Mr Matt Flavel

G20 Policy Division
General Manager: Ms H K Holdaway

G20 Operations and Logistics Division
General Manager: Ms Mary Balzary

Overseas Operations

Washington DC
Ms Amanda Sayegh

Paris
Ms Sue Vroombout

London
Mr James Kelly

Tokyo
Ms Kate Phipps

Beijing
Mr Adam McKissack

Jakarta
Mr Trevor Thomas

New Delhi
Mr Matt Crooke

Papua New Guinea
Mr Bruce Reid

Jakarta
Ms Natalie Horvat

Solomon Islands
Mr Colin Johnson

Fiscal Group: Executive Director, Mr Nigel Ray

Budget Policy Division
General Manager: Ms Luise McCulloch

Commonwealth-State Relations Division
General Manager: Mr Peter Robinson

Infrastructure, Industry, Environment and Defence Division
General Manager: Mr David Haigh

Social Policy Division
General Manager: Ms Leesa Croke

Revenue Group: Executive Director, Mr Rob Heferen

Board of Taxation Secretariat
Secretary: Mr Matthew Brine

Tax Analysis Division
General Manager: Mr Steve French

Small Business Tax Division
General Manager: Mr Hector Thompson

Corporate and International Tax Division
General Manager: Mr David Pearl

Law Design Practice
General Manager: Mr Tom Reid

Personal and Retirement Income Division
General Manager: Mr Paul Tilley

Tax White Paper Task Force
General Manager: Mr Roger Brake

Markets Group: Executive Director, Ms Jan Harris

Australian Government Actuary
General Manager: Mr Peter Martin

Deregulation Division
General Manager: Mr Paul McCullough

Small Business Competition and Consumer Policy Division
General Manager: Ms Jenny Wilkinson

Financial System and Services Division
General Manager: Ms Meghan Quinn

Foreign Investment
and Trade Policy Division

General Manager: Mr Jonathan Rollings

Takeovers Panel
Director: Mr Allan Bulman

Competition Policy Review Secretariat
Secretariat: Ms Christine Barron

Financial System Inquiry
Head of Secretariat: Mr John Lonsdale

Figure 2: Treasury outcome and programme structure (as at 30 June 2014)

Outcome 1:
Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations.

Programme 1.1: Department of the Treasury

Macroeconomic Group

Macroeconomic Conditions Division
Macroeconomic Modelling and Policy Division
International Policy and Engagement Division
G20 Policy Division
G20 Operations and Logistics Division
Overseas Operations
Overseas Posts

Fiscal Group

Budget Policy Division
Commonwealth-State Relations Division
Infrastructure, Industry, Environment and Defence Division
Social Policy Division

Revenue Group

Board of Taxation Secretariat
Tax Analysis Division
Small Business Tax Division
Corporate and International Tax Division
Law Design Practice
Personal and Retirement Income Division
Tax White Paper Task Force

Markets Group

Australian Government Actuary
Deregulation Division
Small Business Competition and Consumer Policy Division
Financial System and Services Division
Foreign Investment and Trade Policy Division
Takeovers Panel
Competition Policy Review Secretariat
Financial System Inquiry

Corporate Strategy and Services Group

Financial and Facilities Management Division
Information Management and Technology Division
Ministerial and Communications Division
People and Organisational Strategy Division

Programme 1.2: Payments to International Financial Institutions
Macroeconomic Group: International Policy and Engagement Division
Programme 1.3: Support for markets and business
Markets Group: Financial System and Services Division
Programme 1.4: General revenue assistance
Fiscal Group: Commonwealth-State Relations Division
Programme 1.5: Assistance to the states for healthcare services
Fiscal Group: Commonwealth-State Relations Division
Programme 1.6: Assistance to the states for schools
Fiscal Group: Commonwealth-State Relations Division
Programme 1.7: Assistance to the states for skills and workforce development
Fiscal Group: Commonwealth-State Relations Division
Programme 1.8: Assistance to the states for disabilities services
Fiscal Group: Commonwealth-State Relations Division
Programme 1.9: Assistance to the states for affordable housing
Fiscal Group: Commonwealth-State Relations Division
Programme 1.10: National partnership payments to the states
Fiscal Group: Commonwealth-State Relations Division
Figure 3: Treasury portfolio outcome and programme structure (as at 30 June 2014)

Portfolio Minister — Treasurer
The Hon Joe Hockey MP

Minister for Small Business
The Hon Bruce Billson MP

Acting Assistant Treasurer
Senator the Hon Mathias Cormann

Parliamentary Secretary to the Treasurer
The Hon Steven Ciobo MP

Department of the Treasury
Secretary: Dr Martin Parkinson

Outcome 1: Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations

Programme 1.1: Department of the Treasury

Programme 1.2: Payments to International Financial Institutions

Programme 1.3: Support for markets and business

Programme 1.4: General revenue assistance

Programme 1.5: Assistance to the states for healthcare services

Programme 1.6: Assistance to the states for schools

Programme 1.7: Assistance to the states for skills and workforce development

Programme 1.8: Assistance to the states for disabilities services

Programme 1.9: Assistance to the states for affordable housing

Programme 1.10: National partnership payments to the states

Australian Bureau of Statistics
Statistician: Mr Jonathan Palmer A/g

Outcome 1: Informed decisions, research and discussion within governments and the community by leading the collection, analysis and provision of high-quality, objective and relevant statistical information

Programme 1.1: Australian Bureau of Statistics

Australian Competition and Consumer Commission
Chairman: Mr Rod Sims

Outcome 1: Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services

Programme 1.1: Australian Competition and Consumer Commission

Australian Office of Financial Management
Chief Executive Officer: Mr Robert Nicholl

Outcome 1: The advancement of macroeconomic growth and stability, and the effective operation of financial markets, through issuing debt, investing in financial assets and managing debt, investments and cash for the Australian Government

Programme 1.1: Australian Office of Financial Management

Australian Prudential Regulation Authority
Chairman: Mr Wayne Byres

Outcome 1: Enhanced public confidence in Australia’s financial institutions through a framework of prudential regulation that balances financial safety and efficiency, competition, contestability and competitive neutrality

Programme 1.1: Australian Prudential Regulation Authority

Australian Securities and Investments Commission
Chairman: Mr Greg Medcraft

Outcome 1: Improved confidence in Australia’s financial markets through promoting informed investors and financial consumers, facilitating fair and efficient ma
rkets and delivering efficient registry systems

Programme 1.1: Australian Securities and Investments Commission

Programme 1.2: Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts

Australian Taxation Office
Commissioner: Mr Chris Jordan AO

Outcome 1: Confidence in the administration of aspects of Australia’s taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law

Programme 1.1: Australian Taxation Office

Programme 1.2: Tax Practitioners Board

Programme 1.3: Australian Business Register

Programme 1.4: Australian Valuation Office

Programme 1.5: Australian Charities and Not-for-profit Commission

Programme 1.6: Australian Screen Production Incentive

Programme 1.7: Cleaner Fuels Grant Scheme

Programme 1.8: Fuel Tax Credits Scheme

Programme 1.9: National Rental Affordability Scheme

Programme 1.10: Product Stewardship for Oil

Programme 1.11: Research and Development Tax Offset

Programme 1.12: Baby Bonus

Programme 1.13: Education Tax Refund

Programme 1.14: First Home Saver Accounts National Urban Water and Desalination Plan

Programme 1.15: Low Income Superannuation Contribution

Programme 1.16: Private Health Insurance Rebate

Programme 1.17: Superannuation Co-contribution Scheme

Programme 1.18: Superannuation Guarantee Scheme

Programme 1.19: Interest on Overpayment and Early Payments of Tax

Programme 1.20: Bad and Doubtful Debts and Remissions

Programme 1.21: Other Administered

Clean Energy Finance Corporation
Chair: Ms Jillian Broadbent AO

Outcome 1: Facilitate increased flows of finance into Australia’s clean energy sector applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders

Programme 1.1: Clean Energy Finance Corporation

Commonwealth Grants Commission
Secretary: Mr John Spasojevic

Outcome 1: Informed government decisions on fiscal equalisation between the states and territories through advice and recommendations on the distribution of GST revenue and health care grants

Programme 1.1: Commonwealth Grants Commission

Corporations and Markets Advisory Committee
Convenor: Ms Joanne Rees

Outcome 1: Informed decisions by Government on issues relating to corporations regulation and financial products, services and markets through independent and expert advice

Programme 1.1: Corporations and Markets Advisory Committee

Inspector-General of Taxation
Inspector-General: Mr Ali Noroozi

Outcome 1: Improved tax administration through community consultation, review and independent advice to government

Programme 1.1: Inspector-General of Taxation

National Competition Council
President: Mr David Crawford

Outcome 1: Competition in markets that are dependent on access to nationally significant monopoly infrastructure, through recommendations and decisions promoting the efficient operation of, use of and investment in infrastructure

Programme 1.1: National Competition Council

Office of the Auditing and Assurance Standards Board
Chairman: Ms Merran Kelsall

Outcome 1: The formulation and making of auditing and assurance standards that are used by auditors of Australian entity financial reports or for other auditing and assurance engagements

Programme 1.1: Auditing and Assurance Standards Board

Office of the Australian Accounting Standards Board
Chairman: Mr Angus Thomson A/g

Outcome 1: The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions

Programme 1.1: Australian Accounting Standards Board

Productivity Commission
Chairman: Mr Peter Harris

Outcome 1: Well-informed policy decision-making and public understanding on matters relating to Australia’s productivity and living standards, based on independent and transparent analysis from a community-wide perspective

Programme 1.1: Productivity Commission

Royal Australian Mint
Chief Executive Officer: Mr Ross MacDiarmid

Outcome 1: The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted products

Programme 1.1: Royal Australian Mint